Todd’s Topics

October 7, 2022

With technology, the amount of information you receive is unlike any other generation has had to deal with. This information can be very useful, but it can also be overwhelming because of how much of it is out there. You can spend all day trying to figure out something only to find multiple sources telling you all kinds of different things. Finance is no exception. This month I show you what not-to-do to help you narrow down your options. Most importantly, these no-no’s come from Ultra-Wealthy individuals who continue to succeed by NOT making the wrong decisions when it matters most.

5 mistakes the Ultra-Wealthy Individual does not make:

Being Afraid: Fear & self-doubt are your greatest barriers to success. The wealthy know scared money does not make money. To create generational wealth, you have to believe in yourself and cannot be scared of failure. “Often in the real world, it’s not the smart who get ahead, but the bold”.

Keeping up With the Joneses: Many smaller investors are always looking at what their peers are doing, and they try to match or beat their investment strategies. The wealthy establish personal investment goals and long-term investment strategies before making investment decisions. They envision where they want in 10 years, 20 years, and beyond. And they adhere to an investment strategy that will get them there. Instead of trying to chase the competition or becoming scared of the inevitable economic downturn, they trust their plan.

Failing to Rebalance a Personal Portfolio: A balanced portfolio typically includes the right mix of cash, stocks, and bonds based on a person’s age and risk tolerance. Through consistent rebalancing, investors can ensure their portfolios remain adequately diversified and proportionally allocated. However, even if some investors have specific allocation goals, they often do not keep up with rebalancing, allowing their portfolios to skew too far one way or the other. Rebalancing your portfolio is key to staying true to your plan and avoiding being too risky or too safe.

Not Having a Savings Strategy for Your Financial Plan: The ultra-wealthy understand that a financial plan is a dual strategy: You must invest wisely and save wisely. By having a savings strategy, they can focus on increasing their cash inflows as well as reducing their cash outflows, thus increasing overall wealth. While it might not be common to think of the ultra-wealthy as savers, they know that living below their means will allow them to achieve their desired goals in a shorter amount of time.

Not Teaching Yourself Financial Literacy: It’s not how much money you make, it’s how much money you keep. Money without financial literacy is no money. Making money and keeping money are two separate things, don’t confuse the two. Broke people stay broke by spending all their money. Middle-class people stay middle class by saving all their money. Rich people stay rich by laboring all their money.

All in all, the most important thing you can do is to believe in yourself. As the first point lays out “fear and self-doubt are the greatest barriers to success”, so believe you can do it! The second most important thing to do is to understand your level of knowledge. This is vital because if you find you are not someone with all the answers when it comes to finance, you need to speak with a qualified professional who can guide you. A registered Financial Advisor will get to know your unique situation and help you avoid making the mistakes laid out in this article. If you have any questions or want more information, please reach out to us at or call us at 5205444909.

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